Agnico-Eagle Mines has reported net income of $88.0 million ($0.53 per share) for the fourth quarter of 2010, compared with $47.9 million ($0.31 per share) in the same quarter last year.
For the full year 2010, the company recorded net income of $332.1 million, or $2.05 per share compared with $86.5 million in 2009. Gold production increased by over 100 percent as a result of a full year of production at Kittila, Pinos Altos and Lapa, the startup of production at the Meadowbank mine in March, combined with higher realized prices for gold, silver, copper and zinc.
The company's payable gold production for the full year 2010 was a record 987,609 ounces, compared with 492,972 ounces in 2009.
At year-end 2010, the company's proven and probable gold reserves totaled 21.3 million ounces, net of depletion, an increase of 2.9 million ounces (or 16%) over 2009 levels. The largest increase (2.6 million ounces) came from the conversion of resources to reserves at the new Meliadine project in Nunavut, Canada (acquired in July 2010).
Agnico-Eagle's overall mineral reserves are expected to continue to grow in 2011 as the company continues to convert its resources to reserves and continues the exploration of its properties outside of the currently known resource. Agnico-Eagle's goal is to increase gold reserves from its existing portfolio of mines and projects to more than 22 million ounces by year-end 2011. During 2011, the company expects to invest approximately $145 million in exploration.
"The growth plan that transformed the company over the past several years has resulted in record gold reserves and record annual financial and operating results," said Sean Boyd, vice-chairman and chief executive officer.
"As Agnico-Eagle begins the next five-year growth phase from our expanded production platform, our strategy remains unchanged. The focus continues to be to increase our gold reserves, gold production, earnings and cash flows, each on a per-share basis."
Cash and cash equivalents decreased to $104.6 million at 31 December, 2010 from the 30 September balance of $148.1 million, as the company repaid $65 million of its long term debt during the quarter.
The senior management of Agnico-Eagle will host a conference call today, Thursday, February 17, 2011 at 11:00 AM (EST) to discuss financial results and provide an update of the company's exploration and development activities. A detailed mineral reserve and resource update will also be provided.
A live audio webcast of the meeting will be available on the company's website homepage at www.agnico-eagle.com
